Audit 360921

Title: Note 3: Loan Accounting Policies: Note 1: Basis of Presentation This schedule includes the federal grant activity of Madelia Housing, Inc. under programs of the federal government for the year ended December 31, 2024. The information presented in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of Madelia Housing, Inc., it is not intended to and does not present the balance sheet, statement of operations, or cash flows of Madelia Housing, Inc.. Note 2: Summary of Significant Accounting Policies (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the insured mortgage as discussed below. (2) Madelia Housing, Inc.’s federal awards are not based on eligible costs incurred. De Minimis Rate Used: N Rate Explanation: Accordingly, Madelia Housing, Inc. has not made an election related to the use of the 10% de minimis indirect cost rate described in the Uniform Guidance. Federal expenditures for the mortgage insurance rental housing program and HOME Investment Partnerships Program represent the December 31, 2023 balance of the mortgage and loan funded in previous years for which HUD imposes continuing compliance requirements. The balance of the mortgage and loan outstanding as of December 31, 2024 were $689,315 and $728,129, respectively.